The average Dutch household spent 32,500 euro in 2010. Indirect taxes, for example VAT and excise duties, account for 4,320 euro, i.e. more than 13 cents of every euro spent by Dutch households. Proportionally, the highest incomes pay less in indirect taxes than people in the middle-income bracket.
Nearly 60 percent of indirect taxes VAT
Nearly 60 percent of indirect taxes paid by households is value-added tax (VAT). The average Dutch household paid 2,560 euro in VAT in 2010; nearly 2,170 euro was VAT paid over goods and service in the high, general 19 percent VAT rate.
The low VAT rate of 6 percent is imposed on a number of goods and services, e.g. food products, books and bicycle repairs. Approximately one fifth of total household spending is included in the 6 percent category. On average, Dutch households spent nearly 400 euro on goods and services in the low 6 percent category.
Indirect taxes paid by Dutch households, 2010
Excise duties account for one fifth of indirect taxes
The government wants to discourage the consumption of certain products and apart from VAT also imposes excise duty on these products. The amount spent on excise duties averages 960 euro per household, i.e. more than 20 percent of total indirect taxes.
The largest amount paid in excise duties is fuel tax (490 euro). The average Dutch household paid 330 euro on tobacco duty, 390 euro on road tax and 330 euro on environmental taxes.
Proportionally, the lowest and highest incomes pay the least
Indirect taxes account for more than 13 cents of every euro spent by Dutch households. Across the ten different income categories, the amount varies from less than 13 cents to more than 14 cents of the disposable income. Proportionally, the lowest and highest incomes pay the least.
Surprisingly, the highest incomes pay less in indirect taxes per euro they spend than the middle incomes, because they tend to spend more on goods and services exempt from VAT, like education and sports. Proportionally, they also spend less on smoking, alcohol and soft drinks.
Indirect taxes by euro spent by Dutch households by income category, 2010